Accounting information can be an invaluable tool for supporting the planning and control functions of management. This introductory subject explores a range of management accounting techniques, including costing systems, pricing systems, activity-based costing, budgeting, variance analysis and contemporary approaches to measuring performance. Students learn to incorporate behavioural responses to accounting information and the need to consider financial and non-financial information (including ethical considerations) in planning and control decisions.
|Academic unit:||Bond Business School|
|Subject title:||Cost Management Systems|
Delivery & attendance
|Attendance and learning activities:||Attendance at all class sessions is expected. Students are expected to notify the instructor of any absences with as much advance notice as possible.|
|Prescribed resources:|| |
|[email protected] & Email:||[email protected] is the online learning environment at Bond University and is used to provide access to subject materials, lecture recordings and detailed subject information regarding the subject curriculum, assessment and timing. Both iLearn and the Student Email facility are used to provide important subject notifications. Additionally, official correspondence from the University will be forwarded to students’ Bond email account and must be monitored by the student.|
To access these services, log on to the Student Portal from the Bond University website as www.bond.edu.au
Assurance of learning
Assurance of Learning means that universities take responsibility for creating, monitoring and updating curriculum, teaching and assessment so that students graduate with the knowledge, skills and attributes they need for employability and/or further study.
At Bond University, we carefully develop subject and program outcomes to ensure that student learning in each subject contributes to the whole student experience. Students are encouraged to carefully read and consider subject and program outcomes as combined elements.
Program Learning Outcomes (PLOs)
Program Learning Outcomes provide a broad and measurable set of standards that incorporate a range of knowledge and skills that will be achieved on completion of the program. If you are undertaking this subject as part of a degree program, you should refer to the relevant degree program outcomes and graduate attributes as they relate to this subject.
Subject Learning Outcomes (SLOs)
On successful completion of this subject the learner will be able to:
- Apply traditional and contemporary costing, pricing and accounting methods to a variety of management decision-making scenarios, including the determination of costs of products or services using activity-based costing, and non-routine operating decisions.
- Formulate solutions, supported by appropriate analytical and quantitative techniques, to simple accounting problems.
- Prepare a master budget and supporting schedules and explain behavioural issues of the budgeting process.
- Apply standard cost concepts to prepare flexible budgets and calculate and interpret variances.
- Demonstrate the ability to resolve a scenario of ethical conflict by applying the standards, ethics, and professional values of the accounting profession.
- Work cooperatively and contribute as a productive team member to the creation of a master budget and business report.
|In-Class Quiz - Individual||Tutorial Quiz (5 quizzes comprised of MCQs)||15%||Ongoing||1, 2, 3, 4.|
|Project §||Prepare a master budget and business report. A peer evaluation system will be used to assess the performance of each group member during the project.||25%||Week 11||1, 2, 3, 4, 5, 6.|
|Paper-based Examination (Closed)||Comprehensive final examination||40%||Final Examination Period||1, 2, 3, 4.|
|Paper-based Examination (Closed)||Mid-semester examination||20%||Week 6 (Mid-Semester Examination Period)||1, 2, 3, 4.|
- § Indicates group/teamwork-based assessment
- * Assessment timing is indicative of the week that the assessment is due or begins (where conducted over multiple weeks), and is based on the standard University academic calendar
- C = Students must reach a level of competency to successfully complete this assessment.
|High Distinction||85-100||Outstanding or exemplary performance in the following areas: interpretative ability; intellectual initiative in response to questions; mastery of the skills required by the subject, general levels of knowledge and analytic ability or clear thinking.|
|Distinction||75-84||Usually awarded to students whose performance goes well beyond the minimum requirements set for tasks required in assessment, and who perform well in most of the above areas.|
|Credit||65-74||Usually awarded to students whose performance is considered to go beyond the minimum requirements for work set for assessment. Assessable work is typically characterised by a strong performance in some of the capacities listed above.|
|Pass||50-64||Usually awarded to students whose performance meets the requirements set for work provided for assessment.|
|Fail||0-49||Usually awarded to students whose performance is not considered to meet the minimum requirements set for particular tasks. The fail grade may be a result of insufficient preparation, of inattention to assignment guidelines or lack of academic ability. A frequent cause of failure is lack of attention to subject or assignment guidelines.|
For the purposes of quality assurance, Bond University conducts an evaluation process to measure and document student assessment as evidence of the extent to which program and subject learning outcomes are achieved. Some examples of student work will be retained for potential research and quality auditing purposes only. Any student work used will be treated confidentially and no student grades will be affected.
Students must check the [email protected] subject site for detailed assessment information and submission procedures.
Policy on late submission and extensions
A late penalty will be applied to all overdue assessment tasks unless an extension is granted by the subject coordinator. The standard penalty will be 10% of marks awarded to that assessment per day late with no assessment to be accepted seven days after the due date. Where a student is granted an extension, the penalty of 10% per day late starts from the new due date.
Policy on plagiarism
University’s Academic Integrity Policy defines plagiarism as the act of misrepresenting as one’s own original work: another’s ideas, interpretations, words, or creative works; and/or one’s own previous ideas, interpretations, words, or creative work without acknowledging that it was used previously (i.e., self-plagiarism). The University considers the act of plagiarising to be a breach of the Student Conduct Code and, therefore, subject to the Discipline Regulations which provide for a range of penalties including the reduction of marks or grades, fines and suspension from the University.
Feedback on assessment
Feedback on assessment will be provided to students within two weeks of the assessment submission due date, as per the Assessment Policy.
If you have a disability, illness, injury or health condition that impacts your capacity to complete studies, exams or assessment tasks, it is important you let us know your special requirements, early in the semester. Students will need to make an application for support and submit it with recent, comprehensive documentation at an appointment with a Disability Officer. Students with a disability are encouraged to contact the Disability Office at the earliest possible time, to meet staff and learn about the services available to meet your specific needs. Please note that late notification or failure to disclose your disability can be to your disadvantage as the University cannot guarantee support under such circumstances.
Additional subject information
A peer-evaluation system will be used in this subject to help determine the individual marks for all group assessments. As part of the requirements for Business School quality accreditation, the Bond Business School employs an evaluation process to measure and document student assessment as evidence of the extent to which program and subject learning outcomes are achieved. Some examples of student work will be retained for potential research and quality auditing purposes only. Any student work used will be treated confidentially and no student grades will be affected.
Provides an introduction to management accounting and explains how it differs from financial accounting. Also considers the ethical requirements of professional accountants and the application of fundamental principles to the management accountant’s decision making.
Begins with an overview product costing in a manufacturing environment and extends to job costing and process costing systems and the differences between the two. Methods for calculating costs and recording appropriate journal entries for each system are introduced as are ethical issues surrounding the preparation of an internal cost report.
The traditional cost allocation system is contrasted with the more contemporary activity-based costing (ABC) system in regards to the allocation of overhead costs. Applications of ABC concepts to a range of scenarios are explored.
Pricing decisions, budgeting decisions, profit forecasts all depend on accurate cost predictions, and much of a management accountant’s work is likely to be in estimating costs. Knowing when costs are variable and when they are fixed is critical. The application of account analysis, high-low method and regression analysis to estimate a cost function is demonstrated, including the use of spreadsheet software to graph and estimate a cost function.
The usefulness of absorption costing and variable costing income statement formats are contrasted. Focus is given to internal decision making, planning and performance evaluation. Cost volume profit analysis is introduced and used to determine break-even points, target profit, evaluate operating risk, and special order and equipment replacement decisions. Margin of safety, break-even analysis for multiple products, operating leverage and the management of fixed and variable costs are covered.
An introduction to the purpose and benefits of preparing a master budget. The process of creating a master budget and accompanying component budgets, including those relating to sales, production, costs, operations, cash, and various supporting schedules, that enable the preparation of a budgeted income statement and budgeted balance sheet are demonstrated. Break-even risk assessment and sensitivity analysis of the budgeted figures are introduced, with emphasis on the human aspects of budgeting.
The flexible budget, a management accounting tool that facilitates investigation into various budget variances is introduced. Calculation and interpretation of variances, and making recommendations for improvement, are emphasised.
Compares features of decentralisation and centralisation of organisational control and identifies advantages and disadvantages of both. Introduces responsibility accounting and measures employed to evaluate performance. Issues surrounding the promotion of goal congruency, examples of dysfunctional behaviours, and an overview of agency costs, are also examined. Attention is given to using the single-rate and dual-rate methods of cost allocation of support department costs.
Considers the relevant and irrelevant information in various decision situations (e.g., outsourcing, dropping a department, product mix, and replacement of equipment). Concepts surrounding the consideration of opportunity costs, quantitative and qualitative factors in decision making are highlighted. Agency conflicts are identified and suggestions on performance-evaluation models that might mitigate these conflicts are also examined.
Introduces the concept of pricing and discusses the major external and internal influences on pricing decisions. Price elasticity and optimal price, promotional pricing and demand analysis, cost-plus and market-based pricing, product lifecycle pricing strategies, market segmentation analysis and discrimination pricing, and related concepts are explored.
Changes, if any, will be notified via iLearn